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What Do Order Fulfilment Companies Do?

The e-commerce industry is growing at a faster rate than it has ever. In 2007, ecommerce was responsible for just 3.4 percent of sales. However, by 2020, the e-commerce industry accounted for 21.3 percent of sales. The overall sales of e-commerce increased by 44% year on year. Online sales increase, which means more orders are shipped out, which puts companies that fulfill orders on the market in great demand.

As technology changes, as does the supply chain industry. It isn’t easy for startups and small companies in keeping up these developments. It’s the reason why so many are beginning to realize the impact that order fulfilment business could have on their businesses.

What do Order Fulfilment Companies Do?

An order fulfilment company is used for logistics and supply chain management to outsource some or all of a company’s distribution/fulfilment. In essence, an order fulfilment business helps you deliver the product you sell to your client.

Services typically provided by order fulfilment companies comprise:

Packing and picking up
Cross docking
International shipping

Who needs an Order Fulfilment Company?

The decision of whether you should or could benefit from an order fulfilment service is dependent on your business and you. Every size business could benefit from an order fulfilment service, especially when your margins are good.

Based on Shopify, “An estimated 86 percent of Fortune 500 companies and 96 percent of Fortune 100 use these services.” Therefore, if these major brands put their business to the care of a fulfilment company UK then why shouldn’t you?

Small businesses and startups particularly will profit from the services of order fulfilment. If your company is ready to expand by partnering together with an order fulfilment service can be an enormous benefit for you. It allows you to enjoy a variety of advantages normally only offered to larger corporations. You’re essentially joining forces with other businesses in order to reap the advantages that only big company gets.

Why should you use an Order Fulfilment Company?

Advantages from Order Fulfilment Companies

The companies that handle order fulfilment are a huge benefit for your business. With the assistance of the right fulfilment service you can boost your company to the next level. These are the main advantages of working with an order fulfilment business.

  1. You don’t need your own Warehouse

One of the main advantages of handing your fulfilment in order fulfilment firm is the fact that you no longer have to manage your inventory by yourself. Running your own warehouse can be very costly. If you manage your own business, you do not just have to pay for the space, but also everything else associated with that space.

Based what the dimensions of your business and the amount of orders you place, This could mean:

Racks for warehouses
Conveyor belts
Packing material, boxes and boxes
Software for managing orders
Warehouse management software for warehouse management
Label printers designed for packaging as well as packing slips

  1. Easily integrates with a variety of Ecommerce Platforms

An order fulfilment service will assist you with integrating all your e-commerce platforms to provide a hassle-free solution. Instead of trying to connect each system by yourself, and then needing to manage it, which may require additional assistance from IT (more dollars) you can simply hand it to an experienced order fulfilment business which can help you connect all of your systems.

A professional helping you out will not only guarantee the system you have in place properly, but also frees you up to spend your time and resources to concentrate on expanding your business.

  1. Negotiate Better Shipping Prices

Utilizing an order fulfilment business can help you benefit from lower shipping costs. Why? If you’re self-fulfilling your orders and sending 50 orders a day, you do not have the same bargaining influence as if you were part of a larger company that is shipping hundreds of orders every day.

The companies that handle their own delivery (USPS, FedEx, etc.) would like to reward using a larger truck, so the more packages you send the better deal they’ll give you. If you’re working in conjunction with an order fulfilment service which is shipping thousands or hundreds of packages daily You’ll be able to get a discount.

  1. You don’t have to hire Warehouse Workers

If you manage your order fulfilment in-house, then it is not just that you need to cover the cost of the space for the warehouse and the equipment needed for the system to function You also need to recruit employees to run the warehouse. This can be costly and time-consuming! We’re aware of how many business owners are concerned about their employees . If you recruit employees when you’re expanding or during a busy time, but then have to let them go once the sales slow down, it can weigh heavy on your heart.

Through an order fulfilment service, they handle this task for you. We’ve designed our business to allow us to expand along with you. In addition, we have great employees who strive to treat your brand with love and respect. We believe in doing what you’re the best at and are really adept in bringing on, training and managing great warehouse workers.

  1. The ability to travel internationally

International travel is a major headache and it’s not only the process of getting your product in front of your customers which is the most difficult part and all the paperwork that comes along with it.

Based on Shopify, “One of the problems with expanding globally is dealing with global fulfilment. There are very few in the world who are willing to manage the documentation, customs, duty and other issues that can arise when dealing with international sales.”

If you join forces to an order fulfilment business with experience and who knows the lingo it will reduce the stress and headaches of expanding internationally.

  1. Growth Potential

If your company is growing rapidly it is not something you’d want to do is take on the reins and slow down the pace because you’re not keeping up with your fulfilment. Another option is to push your employees to the ground to keep pace. This is not the best alternative.

Finding an order fulfilment service that you can expand to will provide ample runway to let your business grow.

  1. Save Time

If you’re a new business and still delivering packages from your basement, perhaps you’re not yet ready to move into an office space and aren’t obligated to consider these costs right now however, what is the time self-fulfilment taking you? What can you accomplish to expand your business using that time?

In the event that time equals money,, do you actually save money through self-fulfilment? If you’re distributing twenty or more items each day, it’s an ideal time to upgrade into an order fulfilment service.

  1. Outside Support

There is no way to become an authority or a specialist in all areas of business but sometimes just a little help in the right place can be the most significant difference. Companies that handle order fulfilment can assist in assisting your business to ensure that you can concentrate on the areas you excel at. A fulfilment service can provide an opportunity to look at the supply chain for your business and assist you in identifying areas to improve.

The Takeaway

Self-fulfilment is often viewed as an excellent option to save money, however it’s not always the case. Self-fulfilment can actually be expensive and requires lots of money to set up an entire warehouse.

A fulfilment service can help you save time and money, while giving you the opportunity to expand and grow your company.